In this article, we discuss 5 best ESG dividend stocks to buy according to Al Gore. If you want to read our detailed analysis of Al Gore’s sustainable investing and current scenarios, go directly to read 11 Best ESG Dividend Stocks to Buy According to Al Gore.
5. Analog Devices, Inc. (NASDAQ:ADI)
Generation Investment Management’s Stake Value: $649,049,000
Analog Devices, Inc. (NASDAQ:ADI) is an American semiconductor manufacturing company that specializes in data conversion, signal processing, and power management technology. The company uses ESG-centric principles in its functions and is using flexible manufacturing environments.
Generation Investment Management started investing in Analog Devices, Inc. (NASDAQ:ADI) during the second quarter of 2018, purchasing shares worth roughly $400 million. In Q2 2022, the hedge fund boosted its position in the company by 81% which takes its total ADI stake to roughly $650 million. The company represented 3.53% of the firm’s 13F portfolio.
On August 26, Analog Devices, Inc. (NASDAQ:ADI) declared a quarterly dividend of $0.76 per share and has a dividend yield of 2.13%, as of October 28. The company has been raising its dividends consistently for the past 18 years.
In October, Cowen initiated its coverage on Analog Devices, Inc. (NASDAQ:ADI) with an Outperform rating and a $180 price target. The firm mentioned that the company is well-positioned to sustain strong dividend growth and a material repurchase program throughout this economic cycle.
At the end of Q2 2022, 61 hedge funds tracked by Insider Monkey owned stakes in Analog Devices, Inc. (NASDAQ:ADI), compared with 67 in the previous quarter. These stakes have a collective value of over $4.2 billion. Egerton Capital Limited was the company’s leading stakeholder in Q2.
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4. Becton, Dickinson and Company (NYSE:BDX)
Generation Investment Management’s Stake Value: $789,414,000
Becton, Dickinson and Company (NYSE:BDX) is a New Jersey-based multinational medical device company. The company’s 2030 sustainability strategy focuses on a number of areas to address challenges through business models and different initiatives.
Becton, Dickinson and Company (NYSE:BDX) is one of the best dividend stocks on our list as the company has raised its dividends consistently for the past 50 years. Currently, it pays a quarterly dividend of $0.87 per share, with a dividend yield of 1.49%, as of October 28.
Becton, Dickinson and Company (NYSE:BDX) has been a part of Generation Investment’s portfolio since the fourth quarter of 2010. The hedge fund opened its position in the company with shares worth over $230.3 million. In Q2 2022, the firm owned roughly $790 million worth of BD stake, which accounted for 4.3% of its portfolio.
Evercore ISI added Becton, Dickinson and Company (NYSE:BDX) to its TAP Outperform list ahead of the company’s earnings. The firm raised its price target on the stock to $275 with an Outperform rating on the shares.
As of the close of Q2 2022, 42 hedge funds had stakes in Becton, Dickinson and Company (NYSE:BDX), compared with 49 in the previous quarter, as per Insider Monkey’s data. These stakes have a collective value of over $2.17 billion.
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3. The Charles Schwab Corporation (NYSE:SCHW)
Generation Investment Management’s Stake Value: $800,177,000
The Charles Schwab Corporation (NYSE:SCHW) is a Texas-based financial services company that offers investment and commercial banking services to its consumers. The company has also created an ESG investing hub to centralize information on related strategies.
During the second quarter of 2022, Generation Investment Management increased its position in The Charles Schwab Corporation (NYSE:SCHW) by 10%. The firm’s total stake in the company amounted to over $800 million, which represented 4.36% of its 13F portfolio.
On October 26, The Charles Schwab Corporation (NYSE:SCHW) announced a quarterly dividend of $0.22 per share, in line with its previous dividend. The company has raised its dividend twice this year, after ceasing its dividend growth for a year and a half due to the pandemic. As of October 28, the stock has a dividend yield of 1.11%.
Deutsche Bank presented a bullish stance on The Charles Schwab Corporation (NYSE:SCHW)’s fall business. The firm raised its price target on the stock in October with a Buy rating on the shares.
At the end of Q2 2022, 68 hedge funds tracked by Insider Monkey owned stakes in The Charles Schwab Corporation (NYSE:SCHW), compared with 78 in the previous quarter. These stakes have a total value of over $4.5 billion.
RiverPark Funds mentioned The Charles Schwab Corporation (NYSE:SCHW) in its Q3 2022 investor letter. Here is what the firm has to say:
“SCHW reported solid 2Q business metrics in July, with revenue up 13% year over year, and net income up 42% year over year. Schwab and TD Ameritrade (which Schwab acquired in October 2020) have been the leading share gainers in the discount brokerage industry over the last decade, with both generating substantial organic asset growth while also growing operating margins and remaining amongst the price leaders on all products. With these two businesses now combined, revenue and expense synergies should accelerate in 2023, and we believe the company will be in an even stronger position to gather assets and drive long-term margins and free cash flow in the years to come. Moreover, the combination of steadily rising short-term rates (which should benefit net interest income), plus acquisition synergies from the AMTD deal, gives us confidence that SCHW is poised to generate continued double-digit earnings growth for the foreseeable future.”
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2. Baxter International Inc. (NYSE:BAX)
Generation Investment Management’s Stake Value: $836,163,000
Baxter International Inc. (NYSE:BAX) is an American multinational healthcare company that specializes in kidney diseases and other chronic conditions. In Q2 2022, Generation Investment owned over 13 million shares in the company, worth over $836 million. The company represented 4.55% of the firm’s 13F portfolio.
Baxter International Inc. (NYSE:BAX) is one of the best dividend stocks on our list as the company has been raising its dividends consistently for the past five years. It currently pays a quarterly dividend of $0.29 per share and has a dividend yield of 2.09%, as recorded on October 28.
In October, Barclays initiated its coverage of Baxter International Inc. (NYSE:BAX) with an Overweight rating and a $64 price target, highlighting the company’s higher growth and higher margins.
At the end of Q2 2022, Baxter International Inc. (NYSE:BAX) was a part of 37 hedge fund portfolios according to Insider Monkey’s database. The stakes owned by these hedge funds have a total value of over $1.77 billion. Two Sigma Advisors was one of the company’s leading stakeholders in Q2.
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1. Equifax Inc. (NYSE:EFX)
Generation Investment Management’s Stake Value: $850,637,000
Equifax Inc. (NYSE:EFX), a Georgia-based credit bureau company, has always remained committed to its ESG priorities. Last year, the company announced that it will achieve net-zero greenhouse gas emissions by 2040 and has also disclosed its greenhouse gas emission baseline data.
Generation Investment started investing in Equifax Inc. (NYSE:EFX) during the first quarter of 2019 with shares worth over $303.2 million. In the second quarter of 2022, the company was the fourth-largest holding of the firm. The hedge fund owned over 4.6 million EFX shares at the end of the quarter, worth over $850.6 million. The company accounted for 4.63% of the firm’s 13F portfolio.
Equifax Inc. (NYSE:EFX) has been making uninterrupted dividend payments to its shareholders since 1987, which places it as one of the best dividend stocks on our list. It currently pays a quarterly dividend of $0.39 per share and has a dividend yield of 0.94%, as recorded on October 28.
In October, Baird maintained an Outperform rating on Equifax Inc. (NYSE:EFX) with a $199 price target, highlighting the company’s solid non-mortgage revenue in Q3 2022.
As of the close of Q2 2022, 34 hedge funds tracked by Insider Monkey owned stakes in Equifax Inc. (NYSE:EFX), with a total value of over $2.5 billion. Ako Capital was one of the company’s major stakeholders in Q2.
Baron Funds mentioned Equifax Inc. (NYSE:EFX) in its Q1 2022 investor letter. Here is what the firm has to say:
“We initiated a position in Equifax Inc., a leading consumer credit bureau and information services company. It collects and manages large databases of consumer data, such as credit, employment, and income records. Equifax uses these assets to provide data and analytics services to businesses and governments to make credit and marketing decisions. Credit bureaus have numerous competitive advantages, including economies of scale, regulatory barriers, and high switching costs as customers rely on their mission-critical solutions. Following a data breach in 2017, the senior management team was replaced and over $1.5 billion was spent on modernizing Equifax’s technology infrastructure and migrating it to the cloud. In addition to strengthening the company’s cyber defenses, we believe this technology transformation will enable a faster pace of product innovation and drive higher organic growth.
Unique to Equifax is its Workforce Solutions business, which maintains a database of employment and income records sourced from employers and payroll processors. Equifax has over 136 million active records representing over 60% of U.S. non-farm payrolls. Businesses and government agencies use this data for employment and income verification, which is needed when someone applies for a mortgage, requests government benefits, or changes jobs. We believe Equifax has by far the largest repository of this valuable data and continues to add new records at a faster pace than competitors. With durable growth coming from new product innovation and its Workforce Solutions business, we believe that Equifax is a high-quality business that is well positioned to grow earnings per share at a mid-teens rate over a multi-year period.”
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